MegaBigPower (MBP) is one of the largest Cryptocurrency mining interests in the world - megabigpower.com.
MBP proposes dedicating a portion of its mining capacity to mining bitcoins (BTC) to support NuNet. These coins will be used to provide buy-side support for NuBits (NBT) on one or more exchanges. NBT purchased through a Buy Wall will in turn be used to provide sell-side support. Revenue from the Sell Wall will be distributed as dividends to the Nu Shareholders. This mining contract will continue for one voting period and will commence at the beginning of the next voting period after this proposal passes. The mining contract will end upon the completion of the next 10,000 mined blocks (approximately 8.5 days) from that point. Dividends will be distributed within 72 hours of the end of the contract. Remaining buy-side BTC will stay on exchange until expended. Sell-side revenue will be distributed in monthly intervals from that point. If successful this custodial offer can be repeated and expanded to span longer intervals.
Predicted BTC production using 150TH of hash-power for one voting period will be calculated using the Bitcoin network difficulty at the time the proposal is submitted. At the time of this writing, the predicted revenue would be 17.85BTC at the current difficulty rating of 35985640265 (as of 10/31/2014). The authors recommend dustcoin.com for revenue approximation.
If MBP were to mine PPC, it would produce approximately 12,180 PPC which it would then sell into the market for about 25 BTC. Or, the PPC could be used to support the PPC/NBT pair directly on any exchange which carries that pair.
At current market rates, that equates to approximately 9,313 NBT.
For a period of one voting cycle (10,000 blocks, or approximately 8.5 days) we propose a grant of NBT equal to the projected mining revenue +25% to cover the coins we would have mined and otherwise sold to cover expenses such as power costs, labor, rents, insurance and other operational overhead, plus exchange fees, development time, administration of the Buy and Sell Walls and identified risks (below). We may or may not monetize granted NBT through a separate Sell Wall on one or more exchanges using the NuBot. Revenue from this second Sell Wall will remain with MBP. If possible, MBP may make direct sales of NBT through its own channels. MBP will never sell any NBT below the peg rate.
MBP acknowledges the following risks inherent in supporting NuNet in this way:
- That we will not be able to immediately liquidate all awarded NBT, or even liquidate during the course of the mining period.
- Theft or failure of exchange(s) holding our NBT may cause losses.
- Seizure of funds and/or injunction against unregulated exchange(s).
- Complete failure of the NBT buy-side peg and the total loss of our funds.
This grant proposal provides the following benefits to the NuNet:
- Provides buy-side and sell-side support of the peg.
- One voting cycle is a small enough size that keeps risks down while the idea is tested.
- If successful, the mechanism can be expanded in capacity and length of contract. MBP can expand this idea to its petascale mining capacity if desired.
- If successful, other miners can make similar proposals, introducing a competitive market effect, which is beneficial to the NuNet (securing the peg for cheaper).
- If successful, this could create a large number of smaller custodians supporting the peg.
- Demonstrates a “partnership in risk” approach to custodial participation.
This proposal has the following benefits to NuNet shareholders:
- A constant flow of dividends to NuNet shareholders would be expected to increase demand for shares.
We are submitting this proposal on behalf of MegaBigPower, one of the world’s largest ASIC manufacturers and bitcoin miners. Our identity is public and our reputation is very important to us. We are committed to acting in the best interests of the Nu network and its shareholders. We have also acquired a substantial shareholder position in NuNet and have a vested interest in the success of the project.
The results of the BTC mining operation NBT buying and selling activity will be posted to the Nu forum. Reports will include:
- Periodic updates
- Total BTC mined in each period
- Total NBT bought and sold in each period
- Total dividends accumulated in each period
This proposal, when passed by the Nu Shareholders, will be considered binding and the Custodian will proceed with the Grant's operations as described. If at any point during the operation Nu Shareholders deem the elected custodian to be conducting actions that they feel differ from what is described here, or if the network's economic forecasts change, a fully certified motion (majority of votes cast) will be required to make amendments.
Nu forum IDs: buzzdave and MegaBigBen
Email: info@megabigpower.com
Website: http://megabigpower.com